Which of the Following Is True of Diversification

question 38

Multiple Choice

Which of the following is true of diversification?

• A) It is a substrategy of the retrenchment strategy.
• B) Concentric diversification is diversification into unrelated areas.
• C) It should be adopted by an organization facing major environmental threats with strong internal resources.
• D) It aims to make the product or service unique in its category, thus permitting the organization to charge higher-than-average prices.
• E) An organization that faces positive market opportunities but is constrained by relatively weak internal resources should adopt this strategy.

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Definitions:

Psychology

Research focused on understanding the human brain and its activities, mainly as they impact behavior in certain situations.

Unconscious Mind

That part of the mind which is inaccessible to the conscious mind but that affects behaviors and emotions.

B.F. Skinner

Regarded as one of the most influential psychologists, Skinner is known for his work in behaviorism and the development of the operant conditioning theory.

Psychology

The systematic investigation of mental activities and behaviors.